what was the period of Great Depression called? describe the effect of Great Depression of Germany. pls answer
Answers
Great depression (1929-1939) is the period of great depression and this great depression is because of fall in prices and decline goods due to so many people died because they did not get food and Germany faced much than other countries because after the Germany was defeated by allied powers they imposed worst conditions on Germany which led to rise of hitler and due to worst conditions in Germany many people died after that usa have economic support but after this great depression they stopped giving loans so Germany faced worst conditions during great depression .
The Great Depression
Developments in the
post-World War I
The First World War led to the expansion of certain industries in the hope that the war-time boom would continue. However, when the War came to an end, the industries that grew to meet war-time requirements had to be abandoned or modified. Huge stocks had to be disposed off and large numbers of workers had to be sacked. This bred dissatisfaction among the working classes. The situation was made worse by the political complications caused by the Treaty of Versailles. A new wave of economic nationalism which expressed itself in protectionism or in tariff barriers affected world trade. The war also placed a heavy burden of debt on every European country.
Withdrawal of American Capital
At the end of the World War I, America was financially in a sound position. As the moneylender to the world America encouraged the flow of capital into Europe, which helped the European debtor countries. The capital outflow also found outlet in new investments. But these investments yielded profits only after a period. In the meantime, a slump in the U.S. economy forced
the government to impose restrictions on the
export of capital. This resulted in a steep decline in
the volume and value of exports all over the world.
Stock Market Crash in the US
The withdrawal of American capital was aggravated by the US market crash in 1929. The first huge crash occurred on 24 October 1929. This discouraged investors and consumers to such an extent that more and more people began to sell their shares and dispose of their stocks. But there were no buyers. This was followed by the failure of American banks. The American financiers were forced to recall their own funds invested abroad. The stoppage of loans to Germany by America led to the failure of two large German banks. The Bank of England also found itself in bankruptcy.
Breakdown of the International
System of ExchangeDespite emergency measures such as cutbacks in expenditure and increased taxation, the situation did not improve in England. So England decided to leave the Gold Standard. Immediately a great number of countries left the gold standard. Each nation adopted a policy of protectionism and devaluation of currency. Devaluation forced creditors to stop lending. This led to a world-wide credit contraction. Thus the defensive measures adopted by various nations to safeguard their economic interests led to an unprecedented decline in world economic activity. As its effect was deep and prolonged economists and historians call it the Great Depression.
Repercussion in Politics
The Depression changed the political conditions in several countries. In England, the Labour Party was defeated in the general elections of 1931. In the USA, the Republican Party was rejected by the people in successive elections for about twenty years after the Depression.